Nexen Tire said Monday it has signed a direct renewable energy power purchase agreement with SK Innovation E&S. Under a direct PPA, an electricity user contracts directly with a renewable energy supplier to secure power — a structure that offers stable, long-term access to renewable energy.
Starting in November, Nexen Tire's factory in Yangsan, South Gyeongsang Province, will receive about 4 MW of renewable energy from a combination of onshore wind and solar sources. Annual generation is expected to reach roughly 6 GWh — enough to power about 1,600 three-person households for a year — and the company projects the arrangement will cut greenhouse gas emissions by approximately 2,700 tCO₂ annually.
Nexen Tire is also expanding its own solar generation capacity. At the Changnyeong factory, equipment previously operated under rooftop lease agreements will be converted to self-generation as those contracts expire, with the company targeting more than 10 MW of solar capacity by 2028. That would cover about 9 percent of the factory's total electricity consumption with renewable energy. The company is also reviewing plans to install and operate self-generation solar facilities at the Yangsan factory.
Nexen Tire supplies original-equipment tires to European premium automakers including Mercedes-Benz, BMW, Audi and Porsche, making it an export-oriented company with a strong European focus. As those customers tighten their greenhouse gas reduction requirements, the company expects that cutting emissions at the production stage will translate directly into greater market competitiveness.
Nexen Tire previously had its target approved under the Science Based Targets initiative to cut Scope 1 and 2 greenhouse gas emissions by 58.8 percent by 2034 compared with 2023 levels, and has disclosed the target publicly.
"The shift to renewable energy is a strategic investment to secure sustainable competitiveness in the global market, going beyond mere regulatory compliance," a Nexen Tire official said. "We will continue to expand the adoption of renewable energy step by step across our domestic and overseas production sites."
Meanwhile, Nexen Tire has been broadening its customer touchpoints through a range of marketing activities, including co-hosting the third round of the Nexen Tire Speedway Motor Festival with Everland Speedway at the Everland Speedway circuit in Yongin, Gyeonggi Province.
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